More Jobs for Marylanders Incentive Program (MJM)

About this page. This page explains the More Jobs for Marylanders Incentive Program in plain language. The program is authorized under Maryland Tax-General Article §10-704.9 and Maryland Economic Development Article §6-901 et seq., with regulations at COMAR 24.05.27 - PDF - 436.3 KB. If anything on this page conflicts with the statute or regulations, the statute and regulations control.

Important — program closed to new enrollment

The More Jobs for Marylanders program sunsetted on June 1, 2024. Commerce is no longer accepting Notices of Intent or Enrollment Applications.

To participate, a business must have received a Program Enrollment Certificate of Approval before June 1, 2024.

This page remains active for enrolled businesses that continue to submit annual Initial and Final Tax Credit Applications during their 5- or 10-year benefit period.

Program Status

Closed to new enrollment as of June 1, 2024. Commerce continues to process annual Initial and Final Tax Credit Applications for businesses enrolled before that date, for the duration of each enrolled project’s 5- or 10-year benefit period.

The application period is open only to businesses that have received an Enrollment Certificate and have been enrolled for at least a full fiscal year. There is no application fee.

What This Program Does

More Jobs for Marylanders (MJM) provides a refundable Maryland state income tax credit to enrolled manufacturers and Opportunity Zone non-manufacturers that create new full-time positions in Maryland.

Because the credit is refundable, an enrolled business that receives a credit larger than its Maryland income tax liability is eligible to receive a refund for the difference.

The program also includes a sales and use tax refund and a state real property tax credit for certain enrolled projects (see “Additional Benefits” below).

Who This Is For

Two groups of businesses were eligible to enroll. Enrolled businesses in either group continue to receive credits during their benefit period.

Manufacturers

New or existing manufacturers locating or expanding in Maryland that are primarily engaged in activities at the facility classified under the North American Industry Classification System (NAICS) Sectors 31, 32, or 33 — except refiners.

Non-manufacturers in Opportunity Zones

Beginning in 2019, the program expanded to non-manufacturers that locate or expand in a Maryland Opportunity Zone.

Non-manufacturing businesses do not include:

businesses providing adult entertainment
businesses primarily engaged in retail activities (grocery stores excepted)
businesses primarily engaged in the sale or distribution of alcoholic beverages
private or commercial golf courses or country clubs
tanning salons
bailbondsmen

Definitions

Tier 1 Areas. Baltimore City and Allegany, Baltimore, Caroline, Cecil, Dorchester, Garrett, Kent, Prince George’s, Somerset, Washington, Wicomico, and Worcester Counties. Tier 1 Areas also include Opportunity Zones located in any Maryland county.

Tier 2 Areas. Any areas that are not Tier 1 Areas.

Qualified position (manufacturer). A full-time position, newly created, not moved or transferred from another Maryland facility, filled for at least 12 months. For businesses enrolled on or after June 1, 2022, the position must pay at least 150% of the Maryland state minimum wage in effect for that tax year.

Qualified position (non-manufacturer). A full-time position, newly created, not moved or transferred from another Maryland facility, filled for at least 12 months, paying at least $50,000 per year.

Note on Tier 1 Areas. Tier 1 Areas are defined differently across Commerce programs. Some programs list Tier 1 jurisdictions specifically in statute; others determine them from census data. The MJM Tier 1 list above applies only to MJM. The Job Creation Tax Credit and One Maryland Tax Credit use similar definitions to each other, while the Data Center Sales and Use Tax Exemption and MJM each differ. Confirm the correct list for the program you are applying to.

Program Duration and Limits

Benefit period

Tier 1 Areas: 10-year consecutive benefit period
Tier 2 Areas: 5-year consecutive benefit period

Credit amount

Enrolled before June 1, 2022: 5.75% of total wages paid for each qualified position
Enrolled on or after June 1, 2022: 4.75% of total wages paid for each qualified position

The credit fluctuates year to year based on actual wages paid and the number of qualified positions maintained.

Annual program cap and priority

The total amount of income tax credits is capped each fiscal year. When applications exceed the cap, credits are issued in this priority order:

Eligible projects in a Tier 1 Area that received a final certificate in the previous fiscal year
Eligible projects in a Tier 2 Area that received a final certificate in the previous fiscal year
Eligible projects in a Tier 1 Area that did not receive a final certificate in the previous fiscal year
Eligible projects in a Tier 2 Area that did not receive a final certificate in the previous fiscal year

Initial Tax Credit Applications are submitted during an annual application period established by Commerce after July 1 of each year, not on a rolling basis.

Carryforward

The credit is refundable. No carryforward or carryback is permitted. Each benefit year stands on its own.

How the Program Works

Eligibility rules, job creation minimums, and the credit rate depend on when the business was enrolled.

Enrollment date determines which rules apply

	Enrolled before June 1, 2022	Enrolled on or after June 1, 2022
Credit rate	5.75% of wages per qualified position	4.75% of wages per qualified position
Minimum new positions — Tier 1	5 positions	10 positions
Minimum new positions — Tier 2	10 positions	20 positions
Manufacturer wage requirement	See the pre-2022 statute and fact sheet	150% of the Maryland state minimum wage
Authoritative source	Statute before June 1, 2022 - PDF - 115.38 KB; Program Overview Fact Sheet - PDF - 357.24 KB	Senate Bill 391 (2022) - PDF; 2022 Program Changes summary - PDF - 203.25 KB

Credit calculation

The refundable credit equals the applicable percentage multiplied by total wages paid for each qualified position during the benefit year.

Example. A manufacturer enrolled in October 2022 has 10 qualified positions, each paying $50,000 in wages during the benefit year. Total wages = $500,000. Refundable credit = $500,000 × 4.75% = $23,750.

Example. A manufacturer enrolled in March 2021 has the same 10 positions and $500,000 in total wages. Because it enrolled before June 1, 2022, the rate is 5.75%. Refundable credit = $500,000 × 5.75% = $28,750.

Wage requirement (manufacturers enrolled on or after June 1, 2022)

Each qualified position must pay at least 150% of the Maryland state minimum wage in effect for that tax year.

Effective date	State minimum wage	150% of minimum
1/1/2022	$12.50	$18.75
1/1/2023	$13.25	$19.88
1/1/2024	$15.00	$22.50
1/1/2025	$15.00	$22.50
1/1/2026	$15.00	$22.50

The Fair Wage Act of 2023 froze the statewide minimum wage at $15.00/hour beginning January 1, 2024. Some counties (Montgomery, Howard, and Prince George’s) have higher local minimum wages that may apply.

Wage requirement (non-manufacturers in Opportunity Zones)

Each qualified position must pay at least $50,000 per year.

Maintaining qualified positions

To continue receiving credits, the business must maintain at least the number of qualified positions established in its first benefit year for the entire 5- or 10-year benefit period.

If the number of qualified positions falls below the first-year number during the benefit period, the project is removed from the program and the business will receive no further credits.

Key Eligibility Requirements

Requirements for enrolled manufacturers

Primarily engaged at the facility in NAICS Sectors 31, 32, or 33 — except refiners
Offer ongoing job training or a post-secondary education program (e.g., tuition reimbursement) for the duration of the benefit period
Provided Commerce with a Notice of Intent before creating new jobs (now closed)
Began hiring within 12 months of the Notice of Intent, and created the minimum number of new qualified positions within 12 months after the first new hire
Received an Enrollment Certificate from Commerce before June 1, 2024
Did not move the facility from one Maryland county to another after June 1, 2017

Requirements for enrolled non-manufacturers in Opportunity Zones

Located in a Maryland Opportunity Zone
Created at least 10 qualified positions (for businesses enrolled on or after June 1, 2022)
Each qualified position pays at least $50,000 per year and is full-time
Offer ongoing job training or a post-secondary education program for the duration of the benefit period
Began hiring within 12 months of the Notice of Intent, and created the minimum positions within 12 months after the first new hire
Did not move the facility from one Maryland county to another after June 1, 2017
Did not fall within the excluded business types listed in “Who This Is For”

Multi-project businesses

A business that enrolled multiple projects may apply for credits for each project separately. Each project must qualify on its own.

Documents and Information You Will Need

Enrolled businesses submitting annual Initial and Final Tax Credit Applications should be prepared to provide the following.

For the Initial Tax Credit Application

Enrollment date — entered on Commerce’s online portal. Commerce does not require a copy of the Enrollment Certificate.
Confirmation of the Tier 1 / Tier 2 designation of the project location
Projected number of qualified positions and total wages for the benefit year

For the Final Tax Credit Application

Number of qualified positions and total wages paid during the benefit year
Confirmation of compliance with the wage requirement (150% state minimum wage for manufacturers enrolled on or after June 1, 2022; $50,000/year for non-manufacturers)
Documentation that the business continues to meet the job-training or post-secondary-education requirement

What Commerce verifies for you. Commerce Compliance verifies that qualified positions were filled for at least 12 months through the Maryland Department of Labor and a third-party service. Businesses do not need to submit that documentation with the application. Compliance may request payroll records, such as W-2s, if needed.

How to Apply (Enrolled Businesses Only)

Commerce is no longer accepting Notices of Intent or Enrollment Applications. The instructions below apply only to businesses with an Enrollment Certificate issued before June 1, 2024.

Annual application cycle

Initial Tax Credit Application. Submit during the annual application period established by Commerce after July 1 each year. The Initial Application reserves the income tax credit for the benefit year.
Final Tax Credit Application. Submit after the qualified positions have been filled for 12 months. Commerce calculates the actual credit amount based on the wages and positions reported.

Benefit Year 1 timing. For Benefit Year 1 Initial Applicants, the earliest a business may submit an Initial Application is July of the fiscal year following the close of the first fully completed fiscal year of enrollment. This timing rule applies to first-year applicants only.

Both applications are submitted through Commerce’s online portal:

Application fee: None.

Application Review Timeline

Initial Tax Credit Certificate: approximately 45 days
Final Tax Credit Certificate: approximately 90–120 days

Processing times are estimates and depend on a complete application with all required documents and required compliance.

How You Claim the Credit

After Commerce issues a Final Tax Credit Certificate:

File the Maryland income tax return for the benefit year.
Complete the Form 500CR section of the return.
Attach a copy of the Final Tax Credit Certificate from Commerce.

The credit is refundable. If the credit exceeds the business’s Maryland state income tax liability for the year, the business may claim a refund for the difference.

Note. The credit applies only to Maryland state income tax. It does not reduce the county income tax add-on. No carryforward or carryback is permitted.

Additional Benefits for Enrolled Businesses

Sales and use tax refund

All sales and use taxes related to the project may be eligible for a refund. A qualified business entity may apply each year during its 10-year benefit period for a refund of sales and use tax paid in the preceding calendar year on personal property or services purchased for use at the project.

Commerce may issue no more than $1 million in total sales and use tax refunds per fiscal year across all participating businesses.

State real property tax credit

New manufacturers in Tier 1 Areas: 100% credit against the State real property tax. The real property must be owned by the manufacturer — leased facilities do not qualify.
Non-manufacturers in Opportunity Zones: a state real property tax credit equal to the lesser of 100% of the State real property tax or $250 per qualified job. The real property must be owned by the non-manufacturer.

Additional Benefits for All Maryland Manufacturers

These benefits are available to any Maryland manufacturer and do not require participation in the More Jobs for Marylanders program.

Accelerated and bonus depreciation: available to any Maryland manufacturer beginning January 1, 2019.
Maryland sales and use tax exemption: the sales and use tax does not apply to sales of machinery and equipment used in production activities, sales of tangible personal property for consumption in production activities, or sales of tangible personal property for resale or incorporation into other tangible personal property produced for sale. See the Comptroller of Maryland’s guidance.
Partnership for Workforce Quality (PWQ): matching training grants and support services for small and mid-sized manufacturing and technology companies. Funds reimburse up to 50% of the costs of qualified projects. Learn more about the Partnership for Workforce Quality.

Frequently Asked Questions

Legal Notices and Required Language

This program is authorized under:

Program regulations:

COMAR 24.05.27 (PDF) - PDF - 436.3 KB — final April 4, 2022

For businesses enrolled on or after June 1, 2022:

For businesses enrolled before June 1, 2022:

Annual reports:

Applicants should consult the statute and applicable regulations for the complete legal requirements governing this program.

Contact

Amy Poad
Tax Specialist, Tax Incentives
Maryland Department of Commerce
401 E. Pratt Street
Baltimore, MD 21202
Email: [email protected]
Phone: 410-767-0429